How To Claim Crypto Losses On Taxes: Deduction Rules
Form 8949 reports realized crypto losses. The IRS allows $3,000 annually against income, but carryforward mechanics determine multi-year yield positions.
Ways to reduce your cryptocurrency tax liability
Form 8949 reports realized crypto losses. The IRS allows $3,000 annually against income, but carryforward mechanics determine multi-year yield positions.
Koinly uses read-only API access, but the Mixpanel breach in December 2025 exposed email addresses. Here is what data the platform actually sees and stores.
CoinLedger handles basic staking and swaps cleanly. Complex LP positions require manual cleanup, and wash sale detection has blind spots across wallets.
Koinly calculates 10,000 transactions free but gates the download. CoinTracker caps you at 100. Here is what breaks and when you must pay.
Federal crypto tax rates depend on holding period and income type. Long-term gains face 0-20%, short-term and staking rewards hit 10-37%. Here is the bracket math.
Staking rewards are taxed at receipt. Lending interest accrues with every block. LP fees have different rules for v2 and v3 pools. Here is the tax treatment of every yield mechanism.
Summ tracks 2,300+ DeFi protocols with on-chain indexing. Tested against CoinTracker, Koinly, and CoinLedger for multi-chain yield accuracy and cost basis handling.
Rev. Rul. 2023-14 sets the IRS position: staking rewards are ordinary income when you gain dominion and control. Here is what that test means.
CoinLedger wins on pricing, CoinTracker wins on DeFi accuracy. Here is what actually breaks when you hand each platform a multi-protocol yield wallet.
CoinLedger charges $49 to $499 based on transaction count, but DeFi activity inflates that number faster than you expect. Staking rewards, LP deposits, and bridging all count.
Step-by-step logging protocol for depositors running 5-15 yield positions. Captures what tax software cannot auto-generate and survives an audit.
Zapper shut down in August 2026. Here are the trackers that handle DeFi positions, tax reports, and chain coverage without handing your data to a server.
Koinly, CoinTracker, CoinLedger, and TokenTax differ on pricing, DeFi support, and jurisdiction coverage. Here is what each tool handles at realistic volumes.
Every yield list implies you should move. The arithmetic shows otherwise. Gas, slippage, unbonding, and tax events make most moves unprofitable below $10,000.
Most crypto tax software handles exchange trades. Almost none handle rebasing LSTs, LP positions, or multi-chain DeFi correctly. Here is what each platform actually documents.
Koinly and CoinLedger compared on integration counts, DeFi position handling, pricing tiers, free tier limits, supported jurisdictions, and documented gaps.